VinFast Auto Ltd. Ordinary Shares (VFS)

VinFast Auto Ltd. Ordinary Shares: A Comprehensive Overview

Company Profile:

Detailed history and background: VinFast Auto Ltd. (Ticker: VFS) is a Vietnamese electric vehicle (EV) manufacturer founded in 2017 by Vingroup JSC, one of the largest conglomerates in Vietnam. The company officially launched in 2019 and has quickly become a major player in the global EV market. VFS started by importing and selling BMW and GM models before developing its own line of EVs.

Core business areas: VinFast's core business areas are:

• Manufacturing and designing electric vehicles: This includes cars, SUVs, buses, and motorbikes.
• Developing battery and charging infrastructure: VFS is building a network of charging stations in Vietnam and other markets.
• Providing mobility solutions: VFS offers subscription-based access to its vehicles, aiming to make EVs more accessible.

Leadership and structure: Le Thi Thu Thuy is the CEO of VinFast. The company has a global presence, with offices in Vietnam, the United States, Germany, and other countries.

Top Products and Market Share:

Top products: VFS's top products include the VF 8 and VF 9 electric SUVs, which are targeted at the mid-size and full-size SUV segments, respectively. The company plans to launch additional models in the coming years.

Market share: VinFast is a relatively new player in the global EV market, but it is quickly gaining traction. As of November 2023, the company holds a small share of the global EV market, but it is expected to grow rapidly in the coming years. In the US market, VFS is still establishing its presence.

Competitive comparison: VFS's main competitors in the global EV market include Tesla, Volkswagen Group, Hyundai Motor Group, and BYD. Compared to its competitors, VFS offers competitive prices and features. However, it needs to prove its long-term viability and build brand awareness.

Total Addressable Market:

The global EV market is expected to reach a size of $806.3 billion by 2027, growing at a CAGR of 23.8% from 2023. The US EV market is also expected to grow significantly in the coming years, reaching a size of $176 billion by 2027. VinFast is targeting both the global and US EV markets.

Financial Performance:

VFS is still a young company, and it is not yet profitable. However, the company is experiencing rapid revenue growth. In the first half of 2023, VFS reported revenue of $54 million, up from $2.6 million in the same period in 2022. The company's net loss in the first half of 2023 was $727.7 million.

Dividends and Shareholder Returns:

As a young company focused on growth, VFS does not currently pay dividends. The company's stock has performed well since its IPO in March 2023, rising over 70%.

Growth Trajectory:

VFS is in a rapid growth phase. The company is expanding its production capacity, launching new models, and entering new markets. VFS is expected to continue experiencing strong revenue and market share growth in the coming years.

Market Dynamics:

The global EV market is experiencing strong growth, driven by government incentives, falling battery costs, and increasing consumer demand for sustainable transportation. VFS is well-positioned to benefit from these trends.

Competitors:

• Tesla (TSLA): Market leader in the global EV market.
• Volkswagen Group (VOW): Leading global automaker with a strong presence in the European EV market.
• Hyundai Motor Group (HYMTF): Major global automaker with a growing EV portfolio.
• BYD (BYDDF): Leading Chinese EV manufacturer.

Key Challenges and Opportunities:

Challenges:

• Scaling production: VFS needs to scale its production capacity to meet growing demand.
• Building brand awareness: VFS is a relatively new brand, especially in the US market.
• Competition: The EV market is highly competitive, with established players and new entrants vying for market share.

Opportunities:

• Expanding into new markets: VFS is planning to enter new markets, including Europe and North America.
• Developing new technologies: VFS is investing heavily in research and development to improve its battery technology and develop autonomous driving features.
• Partnerships: VFS is partnering with other companies to accelerate its growth, such as with ProLogium for battery technology.

Recent Acquisitions:

VFS has not made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Based on an AI analysis, VFS receives a 7 out of 10 fundamental rating. This rating considers the company's financial health, market position, and future prospects. While VFS is a young company with strong growth potential, it needs to address the challenges mentioned above to achieve long-term success.

Sources and Disclaimers:

This overview uses information from the following sources:

• Vingroup JSC website
• VinFast website
• Reuters
• Bloomberg
• MarketWatch

This information is for informational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.

This response was prepared on November 14, 2023. Please be aware that information and market conditions may have changed since then.